Emaar reveals 55% rise in Q1 net profit
Developer's $234.96mn profit below analysts' estimates
Emaar Properties has reported a 55% rise in first-quarter net profit for 2014.
However, the figure is slightly below analyst estimates.
In a statement, the Dubai developer revealed a $234.96mn (AED863mn) profit for the first three months to 31 March.
This compared to a $151mn (AED556mn) profit for the same period in 2013.
Analysts polled by new agency Reuters on average forecast Emaar would make a quarterly profit of $237mn (AED873mn).
Emaar launched several new projects in the quarter, with particularly strong sales in Egypt and Pakistan, totalling $148.6mn (AED546mn) and $63.9mn (AED235mn) respectively.
Total sales reached $1.611bn (AED5.917bn), 94% higher than the $828mn (AED3.043bn) reached during the same period last year.
Emaar’s shopping malls and retail and hospitality and leisure businesses together contributed $366mn (AED1.346bn) in recurring revenues during the quarter, nearly 60% of total revenues and 15% higher than the $317mn (AED1.166bn) recorded in Q1 last year.
Shopping malls and retail made up over 38% of total revenue at $234.9mn (AED863mn).
Emaar chairman, Mohamed Alabbar, said all core sectors of the Dubai economy had performed well, including aviation, retail, tourism, trade and hospitality, which helped the developer’s growth, highlighted by an increased number of international investors in its projects, particularly in new markets.
“The increase in tourist arrivals to Dubai and the positive market sentiment have catalysed the growth of our shopping malls and hospitality business too, which contribute significantly to our recurring revenues. This year, led by our strategy to monetise key performing assets, expand to high-growth international markets and develop prime real estate assets in Dubai, we will continue to focus on delivering long-term value for our shareholders and in providing exceptional service standards to our customers,” he added.
Emaar plans to list up to 25% of its Malls Group equity through a secondary offering of shares. The developer expects to make AED8 or 9bn from the sale, which will be distributed as a dividend to shareholders.